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Sebastian Alvarez Espinoza


UWRT 1102-25
Instructor-Douglas, Connie
February 12, 2015
Automobiles, the utility of our lives that has led to the expansion and discovery of
our world more than ever before. As we all know automobiles started in Europe around
the end of the nineteenth Century which started not just a spark, but a flame of burning
gas that we see in our cars today. There are many automobiles out there as well as
producers. Over the last hundred years, many of these companies started to
manufacture automobiles for the general population which play part of our daily lives. All
of these companies have allowed for a great number of the population to own
automobiles. These companies are located in many parts of the world and have created
wonderful machines that are from different places; such as, United States, Germany,
and Japan. Though many car companies have been able to prosper many have failed.
Due to the high demand of automobiles at this age, we have been looking always for
the better automobile to move us around while providing us with the reliable, safe, and
environmental aspects. One article from National Public Radio quoted Ford Retail sales
were up 14 percent in 2013, as Ford sold 2,493,918 (NPR). Though this might seem
like a good figure for the American automobile industry another article from The
American Prospect that called the automobile industries home a betrayal." Many
economic advisors speculate this claim due to the advancement of the American
industry that has fallen behind and has been taken down by its Asian and European
competitors. The question on everyone's mind is has the American automobile fallen to
its competitors?

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Looking back at the American automobile industry before the 1970's, we can see
the huge decline in sales number that impacted the city of production; Detroit; as well as
the country's economic standing. Before that time the American industry was thriving as
well as innovating. Many of the automobiles being produced at the time are still praised
today; such as, the 1920s Ford Model T which combined economy as well as reliability
or the 1969 Ford Mustang which fitted sportiness as well as the economic factor.
Automobiles like these are just some of the great inventions that Americans created and
how it has run along throughout time. In the article analyzed the surging sales that many
American companies are having are just the healing process that they faced back in
2007-2008 recession which crippled their industry. Most of the reason for the
defamation of this industry comes from the lack of innovation that was set in place as
well as their decision to spend less revenue.
If we take a look at the NPR article, Ford Tops Resurgent U.S. Car Industry,
2013 Sales Results Show. The article presents the many American brands which have
succeeded ever since the recession in 2007-2008. Many of this brands are GMC,
Ford, Chrysler, and Dodge. These brands have had a surge in sales that have been
helping the economy. Many of these automobiles are inexpensive due to the cheap
materials they are made from as well as the proximity from where they are produced.
Many of these industries have been able to survive due to the government bailouts as
well as the increase of money in the economy which have allowed many Americans to
buy new automobiles. In comparison many of these automobiles dont stand up next to
their Japanese and European competitors which have better reliance and more
innovation. If you look at the average middle class car; such as, Toyota Camry; we can

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see the breakthrough they have made such as whiplash preventing seats and providing
airbags in most parts of the car unlike American brands that refuse to do so due to cost.
Another example is the Volkswagen Passat which possess the ability to prevent a car
accident just by communicating with another car. These are the little facts that are
forgotten when thinking about the American industry surge in sales. The greatest
innovation seen today in the American car industry is the on-board wireless internet,
though the article provided solid numbers, it still doesnt explain the lack of innovation
for the advancement in sales.
Furthermore, the other article by The American Prospect explains the horrible job
that the industry has done to halt the innovation and reliance that the American industry
had once in the 1960s. The city of Detroit, the home of the American automobile
industry has fallen apart and has gone from a population two million to almost 700,000
which has set back the city in bankruptcy as well impoverish the blue collar workers in
the area. Though the many American automobiles being produced today many have
been recalled due to factory problems which have endangered the lives of many
Americans as well as individuals around the world. Many of these automobiles are
made for the sole purpose of selling them not providing better technology for the
country. Looking into a big America automobile producer; such as, General Motors, a
company that has been under fire for safety issues in their automobiles; one of these
issues was the ignition switch which would turn off the engine disabling the airbags
causing multiple deaths across the country.

National Public Radio reported GM

engineers received reports about problems like this and held meetings about it in
2005. Engineers decided against a fix because it would take too long and cost too much

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money. General Motors did not act upon the production problem until February 2014
recalling almost a million automobiles a number which turned out to be 8.45 million
automobiles. This scandal has cause a lot of controversy due to the congress not
taking the action needed and not finding out about the issue as of last year. Though
many might argue the American automobile industry is improving in my opinion it has
fallen apart, even though sales might show the opposite, the good innovating
automobiles that used to be made in America no longer exist.
Moreover, over the past years we have seen the how the Japanese market has
been able to past its competitors and has made Toyota and Honda, the most owned
automobile car brand in America. These automobiles though not as safe as their
European competitors have been able to past their American competitors by marketing
reliability as well as a better safety standard than the American brands. If any American
uses a car for transportation they have probably heard the rumors of why Japanese
brands are the right brand choice for anyone looking for good car to move around
efficiently. This trend is thought to have started in the 1970s during the gas turmoil in
America. The book Making and Selling: Innovation and Change in the U.S. Automotive
industry quoted The buying habits of boomers partly responded to the upheavals and
partly created them. Boomers were looking for alternatives to their parents lifestyles
and buying small, energy-efficient, foreign cars fit the bill.(Rubenstein 303). The gas
turmoil was just the entry that the Japanese market needed to market their automobiles
unlike their American competitors who were marketing gas wasting machines such as
the 1970 Ford Impala which was a V8 engine with a 6.6 L motor. The same year Toyota
release their 1.4 L I4 engine with their Toyota Corolla that came right in time during the

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oil crisis. Japan has increased their market share value 18% in 1970 whilst the
American market share had fallen 28%.
Ultimately, the America automobile industry has fallen to its competitors due to
their inability to adapt to the needs of safety, reliability, and economic aspects for the
population. American automobiles though a thriving industry before the 1960s has been
steadily fallen with each new innovation that has been a loss. The past American
automobiles that were proudly driven around the world have taken a name for not caring
for its customers whilst providing a cheap way of innovation provoking customers to
spend large amounts of money to keep their American automobile running. Though
incredible disappointing and hurtful to the American economy this is the fault of the
white-collar workers that have pride for money over the industry that we though they
upheld. Due to all these aspects of the American automobile industry, the average
American has chosen to spend their hard-earned money in an automobile with more
reliability as well the economy. This effect has led to the surge of many foreign car
producers that have beaten the American automobile industry in almost every aspect.
Though sales for the American automobile have risen nothing has changed the
American mindset of what car to buy next. If asked today many Americans would chose
a foreign competitors automobile owing the fact of the satisfaction that has been given
over the years compared to their own industry. Even though the American car industry
hasnt virtually defunct, it is clear that It has fallen to its foreign competitors.

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Works Cited
"General Motors - Detroit's Wounded Giant." The Economist. 377.8453 (2005): 14. Print
Chappell, Bill. "Ford Tops Resurgent U.S. Car Industry, 2013 Sales Results Show."
National Public Radio, 03 Jan. 2014. Web. 09 Feb. 2015.
<http://www.npr.org/blogs/thetwo-way/2014/01/03/259395010/ford-topsresurgent-u-s-car-industry-2013-sales-results-show>.
Rubenstein, James M. Making and Selling Cars: Innovation and Change in the U.S.
Automotive Industry. Baltimore,Maryland: The John Hopkins University Press,
2001. Print.

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